Barclays plans autocallable yield notes tied to S&P 500, Russell 2000

By Angela McDaniels

Tacoma, Wash., July 16 - Barclays Bank plc plans to price 6.85% to 7.75% autocallable yield notes due Jan. 29, 2015 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly. The exact interest rate will be set at pricing.

The notes will be called automatically at par plus accrued interest if both indexes close at or above their initial levels on a quarterly observation date.

A knock-in event occurs if either index closes below its knock-in barrier, 75% of its initial level, on any trading day during the life of the notes.

If a knock-in event does not occur or if it does occur and the return of the lesser performing index is zero or positive, investors will receive par at maturity.

If a knock-in event does occur and the return of the lesser performing index is negative, investors will be fully exposed to the decline of the lesser performing index.

Barclays is the agent.

The notes are expected to price July 24 and settle July 29.

The Cusip number is 06741TYH4.

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